Coinbase is now allowed to work with money in the UK

03/14/2018

The UK regulator (FCA) granted Coinbase a license to work with electronic money. This allows the company to provide payment services and issue digital alternatives to cash, which can then be used to make card, Internet or phone payments.

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One of the largest crypto-currency exchanges in terms of trading volume, Coinbase, received a license from the UK Financial Supervision Authority, which allows the issuance of electronic money and provision of payment services in the country.

Thus, the activity of the exchange in the UK will henceforth be subject to the same requirements as other financial institutions of the country. For example, from now on, the exchange's clients' savings in crypto-currencies will be kept separately from deposits in fiat money. In addition, as noted in the company's blog, the operation of this license will be extended to another 23 EU countries.

However, as Coinbase stressed, "electronic money" is not crypto currency. Therefore, the license implies a more stringent regulation aimed at protecting consumers.

"We strive to ensure that customer funds are always safe, and obtaining such a license means that our operations with electronic money have certain guarantees and comply with the standards adopted in other regulated financial institutions. This is realized, for example, in the approach to client funds that are separated from the company's funds and are located in separate bank accounts," Altcoin quotes the company's comment.

Coinbase also noted that the company can trade inside the union up to Brexit, but if the relevant rules become invalid after the UK leaves the EU, the site will have to suspend its activities in the relevant territories until an updated license is received.

In addition, Coinbase announced the accession to the U.K. system. Faster Payments Scheme, through which British citizens can make bank payments inside the country almost instantly. Initially, this system will be implemented as a pilot project, and only a small group of institutional users of the exchange will receive access to the Faster Payments Scheme.

As noted in the company, the entrance to the markets of the UK and Europe was the answer of Coinbase to the constantly growing demand for services in these regions. The company also plans to increase the staff of its London branch eight times.